Scooter Store lands financing

The New Braunfels-based Scooter Store and Sun Capital wouldn’t disclose terms of the transaction, so it couldn’t be determined if the private equity firm’s affiliate received an ownership stake in the provider of power chairs and other equipment.

The financing will be used to fund the Scooter Store’s growth and pay for potential acquisitions, according to a statement issued Wednesday.

Sweeping health care reforms are reshaping the market dynamics for suppliers, the Scooter Store said in a statement. Government efforts to control health care costs are eroding supplier margins, which could lead to consolidation in the industry, it said.

“The Scooter Store is taking aggressive measures to navigate through the current headwinds and ensure that our company is positioned to take advantage of the new market dynamics,” said Doug Harrison, the Scooter Store’s founder and CEO, in the statement. “The backing provided by the Sun Capital Partners affiliate will allow us to be even more agile.”

Boca Raton-based Sun Capital has about $8 billion of equity capital under management and has invested in more than 250 companies worldwide since its inception in 1995, according to its website.

The Scooter Store generates about $350 million to $400 a year in revenue, a company official told the San Antonio Express-News in October.

The company has launched a home-come equipment division, offering manual wheelchairs, walkers, patient lifts, hospital beds and other devices.

“The Scooter Store is well positioned in a market whose customer base is projected to grow significantly in the coming years,” said M. Steven Liff, Sun Capital’s senior managing director. “We also see opportunities to expand product offerings in areas that would greatly enhance the business.”